We
unfortunately use Federal Reserve edicts as gospel, even though they
often are proven wrong. This has been the case in almost half the
decisions we have gotten under the auspices of the governorships of
Alan Greenspan and Ben Bernanke.
We
have to remember that economists are fallible, even when they direct
the Federal Reserve.
In
the past, those in the Fed worried we may have deflation; they
therefore inflated the economy, and added too much currency. In fact,
the Fed, almost automatically has been on the side of targeting some
inflation, in an attempt to prevent deflation.
Thus,
the Fed has been the chief culprit, causing bubbles which invariably
lead to busts and eventual depressions.
And
today is aiding and abetting inflation with its loose-money policy.
(See the Earl J. Weinreb NewsHole® commentaries.)
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